[HISTORY: Adopted by the City Council of the City of Allentown 4-21-2021 by Ord. No. 15694. Amendments noted where applicable.]
A.
The social and economic vitality of the City of Allentown (the "City")
has been adversely affected by blighted conditions in many neighborhoods,
with the City being home to a substantial inventory of vacant, abandoned
and tax-delinquent properties.
B.
Vacant, abandoned, and tax-delinquent properties impose significant
costs on taxpayers, as well as neighborhoods and communities throughout
the City, by lowering property values, decreasing tax revenues, increasing
fire and police production costs, undermining community adhesion,
and diminishing quality of life.
C.
There is an overriding public need to confront the problems caused
by vacant, abandoned, and tax-delinquent properties through the use,
creation and utilization of tools to return these types of properties
into vibrant, revitalized places, thereby strengthening the City's
tax base.
D.
Land banks are one of the proven tools in Pennsylvania that may be
used facilitate the return of vacant, abandoned, and tax-delinquent
properties to productive use.
E.
The General Assembly of the Commonwealth of Pennsylvania, pursuant
to Act 33 of 2018, P.L. 221 (June 19, 2018), granted land bank jurisdictions
located within certain counties the authority to designate an existing
redevelopment authority operating under the Urban Redevelopment Law,[1] as a land bank for the jurisdiction.
[1]
Editor's Note: See 35 P.S. § 1701 et seq.
F.
Designating the Redevelopment Authority of the City of Allentown
(the "Authority") to act as a land bank will confer the powers and
duties of a land bank on the Authority and the benefits of a land
bank on the City of Allentown without the need to establish a separate
entity, thereby saving administrative costs and promoting governmental
efficiency.
A.
It is the purpose of this chapter to designate the Authority to act
as a land bank for the City of Allentown pursuant to the authority
granted under Act 33 of 2018, P.L. 221 (June 19, 2018) which amended
the Pennsylvania Land Bank Law, 68 Pa.C.S.A. §§ 2101
to 2120.
B.
By designating the Authority as land bank, the City intends to use
available resources to facilitate the return of vacant, blighted,
abandoned and tax-delinquent properties to productive use, thereby
combating community deterioration, improving the quality of neighborhoods,
and creating economic growth by spurring reinvestment and stabilizing
the housing and job market.
C.
When acting as a land bank, the Authority will acquire, hold and
transfer interests in real property throughout the City, as approved
by the Board of Directors for the following purposes: to prevent and
mitigate blight and to facilitate the redevelopment and reuse of vacant,
abandoned and tax delinquent properties in accordance with locally
determined goals and priorities and the policies to be adopted by
the Board of Directors pursuant to this chapter, local government
partners and other community stakeholders and applicable law.
D.
The City of Allentown and the Authority shall identify all surplus
vacant property owned by these entities and property these entities
wish to the land bank to acquire.
This chapter is adopted in accordance with Act 33 of 2018, P.L.
221 as an enactment of the Pennsylvania General Assembly signed by
the Governor on June 19, 2018, amending the Pennsylvania Land Bank
Law, 68 Pa.C.S.A. § 2101 to 2120.
The following words and phrases when used in this chapter shall
have the meanings given to them in this section unless the context
clearly indicates otherwise:
The act of June 19, 2018, P.L. 221, No. 33, codified at 68
Pa.C.S.A. § 2104(h).
The Redevelopment Authority of the City of Allentown, a redevelopment
authority created for the City of Allentown and operating under the
Act of May 24, 1945 (P.L. 991, No. 385), known as the "Urban Redevelopment
Law."[1]
The Authority when acting as a land bank pursuant to the
Land Bank Law and this chapter.
The Board of Directors of the Redevelopment Authority of
the City of Allentown.
A bank, savings associations, operating subsidiary of a bank
or savings association, credit union, or an association licensed to
originate mortgage loans or an assignee of a mortgage or note originated
by such an institution.
Any and all activities, operations, actions and functions
undertaken by the Authority pursuant to the Land Bank Law and this
chapter.
The Act of October 24, 2012, P.L. 1239, No 153, codified
at 68 Pa.C.S.A. §§ 2102 to 2120 and any amendments
thereto.
The rules, policies and procedures adopted by the Board pursuant
to this chapter and the Land Bank Law.
Any real property tax imposed and billed by municipal, school
districts and county governments.
A natural person with a legal or equitable ownership in the
property which was the primary residence of the person for at least
three consecutive months at any point in the year preceding the date
in the initial delinquency.
A corporation, partnership, limited-liability company, business
trust, other association, governmental entity (other than the Commonwealth
of Pennsylvania), estate, trust, or natural person.
Land and all structures and fixtures thereon and all estates
and interests in land, including easements, escrows, covenants, and
leaseholders.
[1]
Editor's Note: See 35 P.S. § 1701 et seq.
The Authority is hereby designated as the Land Bank for the
City pursuant to Act 33 of 2018 and Section 2104(h)(1) of the Land
Bank Law, 68 Pa.C.S.A. § 2104(h)(1).
The Land Bank shall have the following powers and duties:
A.
To develop stewardship and management plans for each acquired interest
not inconsistent with or detrimental to the purpose/rationale which
justifies its acquisition; and
B.
To supervise the management of the property interests acquired; and
C.
To develop annual reports of land bank activity; and
D.
To conduct real property appraisals; and
E.
To negotiate real property purchases or trades; and
F.
To provide for a system of accounting; and
G.
To adopt, amend and/or repeal policies and procedures for contracting
and procurement; and
H.
To borrow money from private lenders, from cities or counties, from
the state or from the federal government funds to further or carry
out the land bank's public purpose by executing leases, trust
indentures, trust agreements, agreements for the sale notes, loan
agreements, mortgages, deeds to secure debt, trust deeds, security
agreements, assignments, and such other agreements or instruments
as may be necessary or desirable, in the judgment of the Land Bank,
to evidence and to provide security for such borrowing; and
I.
To make application directly or indirectly to any federal, state,
county, or municipal government or agency or to any other source,
whether public or private, for loans, grants, gifts, guarantees, labor,
or other aid or financial assistance in furtherance of the Land Bank's
public purpose and to accept and use the same upon such terms and
conditions as are prescribed by such federal, state, county or municipal
government or agency or other source; and
J.
The county hereby assents to real estate tax payment allocation to
the Land Bank for properties returned to the tax rolls after Land
Bank ownership with regard to county real estate taxes to the extent
allowed by state law, and the Land Bank is authorized to seek allocation
of real estate taxes on return of land to the tax rolls after Land
Bank ownership by agreement with other applicable taxing authorities;
and
K.
All other powers and duties provided for, authorized or allocated
under Act 153 of 2012, 68 Pa.C.S.A. § 2107.
All personnel, the Authority as Land Bank, facilities, equipment
and supplies within the land bank shall be governed by a Board of
Directors as provided herein. All action taken by the Board must be
completed in compliance with § 2105(h) of the Land Bank
Law.[1]
A.
Number of Board members. The Land Bank shall be governed by a Board
of Directors comprised of seven members. The Board of Directors of
the Land Bank shall not the authority to modify the size of the Board
under any provision of the bylaws of the Land Bank.
B.
The initial members of the Board of Directors of the Land Bank shall
be five members of the Redevelopment Authority of the City of Allentown
(hereinafter the "RACA") serving on the date of creation of the Allentown
Land Bank and two additional members who shall be appointed by the
Mayor. Each initial Board member who is a member of the Board of Directors
of the RACA shall serve on the Board of Directors of the Allentown
Land Bank for the same term as his or her term on the RACA. The names
of the initial Land Bank Board members and length of terms which they
will serve are as follows:
|
Connie Cowen, Chair
|
|
Rebecca Williams, Vice Chair
|
|
Dan Schmidt, Treasurer
|
|
Tyrone Russell, Secretary
|
|
Rodney Bush
|
C.
Appointments. The members appointed to the Board of Directors of
the Redevelopment Authority of the City of Allentown shall serve as
five of the members of Board of the Allentown Land Bank. The Mayor
will appoint the other two members of the Board of Directors, of which
at least one of whom: one shall be a low- to moderate-income resident
of the City of Allentown, and two shall not be a public official or
municipal employee, and three shall maintain a membership with a recognized
civic organization in the City of Allentown.
D.
Any person may submit recommendations to the City concerning membership
of the Board and appointments thereto by the City.
E.
Term of Board members. The members of the Board of Directors of the
RACA shall also serve on the Allentown Land Bank Board for so long
as they serve on the Board of Directors of the RACA. Each newly appointed
member of Board of Directors of the RACA shall automatically and concurrently
become a member of the Board of Directors of the Allentown Land Bank
for a term that shall be the same as his or her term on the RACA.
F.
Service after expiration of term. Members of the Board of Directors
shall continue to serve until their successors have been appointed
and qualified.
G.
Compensation and expenses. Members of the Board of Directors shall
serve without compensation and may seek reimbursement for expenses
associated with the duties relating to Land Bank activities.
H.
Ethical standards. Members of the Board of the Land Bank and its
employees shall be subject to the Act of July 19, 1957 (P.L. 101),
No. 451, known as the "State Adverse Interest Act"[2] and the ethical standards and disclosure requirements
of 65 Pa.C.S.A. Chapter 11 and any other supplemental rules and guidelines
adopted by the Board of the Land Bank.
[2]
Editor's Note: See 71 P.S. § 776.1 et seq.
I.
Officers. The Land Bank Board members shall annually elect officers
to serve as Chair, Vice Chair, Secretary and Treasurer, each officer
to serve a one-year term. Members may be reelected to serve successive
terms. The duties of officers shall be established by the Board according
to law.
J.
Vacancies. Any vacancy in the Board of Directors of the Land Bank
shall be filled for the balance of the unexpired term by appointment
by the Allentown Land Bank. Any vacancy in a membership of the Land
Bank Board serving by virtue of appointment to the RACA Board shall
be filled by the person appointed by the Allentown Land Bank to fill
the corresponding vacancy on the Board of the RACA.
K.
Meetings of the Board. The Land Bank shall hold regular public meetings
monthly and shall allow for public comment on matters under deliberation
at each such public meeting. The place, date and time of the Land
Bank meetings shall be determined at the discretion of the Board of
Directors. All meetings of the Board of Directors shall comply with
the Pennsylvania Sunshine Act.[3] The Chair of the Board may call special meetings by written
notice delivered at least 24 hours in advance to each Board member
and advertised in accordance with the Pennsylvania Sunshine Act. Special
meetings may also be called upon written notice signed by a majority
of the Board members and delivered at least 24 hours in advance to
each Board member and advertised in accordance with the Pennsylvania
Sunshine Act.
[3]
Editor's Note: See 65 Pa.C.S.A. § 701 et seq.
L.
Quorum. A quorum shall be necessary for the transaction of any business
by the Board of Directors. A majority of the members of the Board
of Directors, excluding vacancies on the Board, shall constitute a
quorum. The Board of Directors shall act by a majority vote of the
members at a meeting at which a quorum is present, except as otherwise
provided in this chapter. No voting by proxy shall be permitted.
M.
Minutes. Minutes of all meetings of the Board of Directors and its
committees shall be made and maintained.
N.
Committees. The Board of Directors may establish such committees
as may be needed to assist the Board in conducting the business of
the Land Bank. Committee members shall be appointed by the Chair,
and each committee shall include at least one member of the Board
of Directors. Any business proposed by a committee shall require approval
by the Board of Directors.
O.
Fiduciary duty. The members of Board of Directors of the Land Bank
are under a fiduciary duty to conduct the activities and affairs of
the Land Bank in the best interests of the residents of the City of
Allentown, including the safekeeping and use of all Land Bank monies
and assets. The Board of Directors shall discharge their duties in
good faith, with the care an ordinarily prudent person in a like position
would exercise under similar circumstances.
[Amended at time of adoption of Code (see Ch. 1, General
Provisions, Art. I)]
P.
All action taken by the Board must be completed in compliance with
§ 2105(h) of the Land Bank Law.
[1]
Editor's Note: See 68 Pa.C.S.A. § 2105(h).
A.
Land Bank activities shall be managed and administered by the management
staff of the Authority. The Authority may also arrange for staff in
conjunction with the City or other partnering public entities.
B.
The Authority management staff may employ or enter into a contract
for an executive director, counsel and legal staff, technical experts
and other individuals, and may determine the qualifications and fix
the compensation and benefits of those employees. The Land Bank may
arrange for any such staff in conjunction with the Redevelopment Authority
of the City of Allentown or other partnering public entities.
C.
Unless otherwise prohibited by law, the Authority may enter into
a contract or memorandum of understanding or intergovernmental cooperation
agreement with a municipality for:
A.
The Authority as Land Bank shall hold title in its own name to all
real property it acquires.
B.
The Authority as Land Bank may acquire property within the City limits
by any legal means, including, without limitation, by donation, gift,
purchase, tax sale, or otherwise, on terms and conditions and in a
manner the Authority considers proper.
C.
If the Authority as Land Bank acquires a residential property occupied
by owner-occupants, it shall be the Authority's policy to show
a preference for keeping the owner-occupants within their homes, whenever
feasible.
D.
The Authority as Land Bank shall acquire, hold and dispose of real
property in accordance with the Land Bank Law.
E.
Any person may submit recommendations to the Board or Authority staff
concerning real property that could be acquired by the Authority as
Land Bank, and the proposed uses for which such real property could
be redeveloped.
The Land Bank shall maintain and make publicly accessible on
the City of Allentown's website and at its offices during normal
business hours the following information:
A.
The Authority as Land Bank is authorized to discharge liens and other
municipal claims, charges, or fines of the City, and the Authority
as Land Bank may seek to enter into an agreement for such discharges
from the applicable municipal body against the properties it acquires.
B.
For the duration of the time a property is held by the Authority
as Land Bank, the Authority as Land Bank is authorized to abate all
real estate taxes, water and sewer charges, and other municipal charges
by the City and, to the extent necessary, may seek abatement or nontaxable
status from other applicable government entities.
A.
The Authority as Land Bank is authorized to convey, exchange, sell,
transfer, lease, grant or mortgage interests in real property acquired
by the Authority as Land Bank in the form and by the method determined
to be in the best interests of the Authority as Land Bank through
any means authorized by the Land Bank Law, except where expressly
limited in this section. Requirements which may be applicable to the
disposition of real property by the City shall not be applicable to
the disposition of real property by the Authority as Land Bank pursuant
to 68 Pa.C.S.A. § 2110(d)(2).
B.
The Board shall include in its Land Bank policies the general terms
and conditions for consideration to be received by the Authority as
Land Bank for the transfer of real property held by the Authority
as Land Bank.
C.
The Board may delegate this disposition authority to the staff of
the Authority, except in the following circumstances in which the
Board itself must review and approve the proposed transfers of real
property at a public meeting:
D.
The Authority as Land Bank shall be guided by any hierarchical ranking
of priorities for the use of real property conveyed by the Authority
as Land Bank as the Allentown City Council may establish, including
use for:
A.
Market value shall be determined by up-to-date data, and by using
the valuation method that the Authority has determined is most appropriate
given the particular conditions of the real property and surrounding
market.
B.
Nominal or reduced-price disposition shall be an option for any real
property owned by the Authority as Land Bank.
C.
In calculating a reduced sales price, the discount shall take into
account the benefit provided by the proposed use, and the amount of
discount needed to make the project both initially financially feasible
and continually sustainable.
D.
For housing projects serving households at a mix of income levels,
the Authority as Land Bank may count the number of low- and moderate-income
households served and provide proportionate discounting.
E.
The Authority as Land Bank shall make available an appeal process
wherein a potential purchaser may submit evidence relevant to the
value of the real property.
F.
The Authority as Land Bank shall enforce any provisions agreed upon
as conditions of sale between the transferee and the Authority through
legally binding mechanisms, including but not limited to deed restrictions,
covenants, and mortgages.
A.
The Authority shall develop land bank policies which are consistent
with the Land Bank Law and with this chapter.
B.
After the adoption of the land bank policies by the Authority, the
land bank policies shall be reviewed at least annually by the Authority
with the opportunity for public input and comment. The land bank policies
shall be published on the Authority's website.
C.
The land bank policies adopted by the Authority shall include ethical
standards, financial disclosure standards and conflict of interest
guidelines consistent with Section 2115 of the Land Bank Law[1] and all other applicable state and local laws.
(1)
Any individual or organization may submit recommendations for Board
membership to the Land Bank for their consideration in making appointments.
(2)
Any individual or organization may submit recommendations to the
Land Bank Board at public meetings or the Authority or Land Bank staff
for real properties that could be acquired by the Land Bank and the
purpose for which such properties could be developed.
[1]
Editor's Note: See 68 Pa.C.S.A. § 2115.
A.
To the extent allowed by law, the Authority shall retain proceeds
from the sale of any real property to cover or contribute to operating
costs, maintenance of inventory, and to support additional strategic
property acquisition.
B.
The Authority shall finance Land Bank activities through any means
authorized under the Land Bank Law or any other applicable law.
The Land Bank may be dissolved according to the requirements
of the state law upon a finding adopted by 2/3 majority of the Board
of Directors and 60 days advanced written notice to the City of Allentown
and Redevelopment Authority that there is no longer any need for a
Land Bank to function within the territorial limits of the City of
Allentown. Assets upon dissolution of the Land Bank shall become the
assets of the municipality in which the property is located. All other
assets shall be distributed according to requirements of Section 2114.[1]
[1]
Editor's Note: See 68 Pa.C.S.A. § 2114.
A.
The Authority as Land Bank shall obtain insurance to defend and indemnify
the Authority and the Land Bank and its' members of the Board
with respect to all claims or judgments arising out of their activities
as Board members against all negligence claims and claims or judgments
arising out of Land Bank activities performed on behalf of the Authority
or the City. Insurance may be through coverage provided by the City.
B.
To be eligible for defense and indemnification, a Land Bank member
shall be obligated to:
(1)
Notify, within five days of receipts, the Board Chair of the Land
Bank and the Executive Director of the Redevelopment Authority of
the City of Allentown, about any claim made against the member and
deliver all written demands, complaints and other documentation and
legal papers received with respect to such claim.
(2)
Cooperate during the investigation and defense of any claim against
the Land Bank or any member of the Land Bank, including, but not limited
to, preparing for an attending depositions, hearings and trails otherwise
assisting in securing and giving evidence.
Upon adoption of this chapter, the City shall file a copy of
the chapter with the Pennsylvania Department of State and provide
a copy to the Pennsylvania Department of Community and Economic Development.
In the event any provision, section, sentence, clause or part
of this chapter shall be held to be invalid, such invalidity shall
not affect or impair any of the remaining provisions, section, sentences,
clauses or parts of this chapter; it being the intent of the City
that the remainder of the chapter shall be and shall remain in full
force and effect.
This chapter shall become effective at the earliest possible
date provided by law.
